Business
Spanish Mountain Gold Announces Project Objectives for 2020
Vancouver, British Columbia--(Newsfile Corp. - February 27, 2020) - Spanish Mountain Gold Ltd...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Announces Project Objectives for 2020Vancouver, British Columbia--(Newsfile Corp. - February 27, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) (OTC Pink: SPAZF)  (the \"Company\") is pleased to provide a corporate update on its 100% owned Spanish Mountain gold project (the \"Project\") located in central British Columbia, Canada. In 2019 the Company completed a Preliminary Economic Assessment (the \"PEA\") for the Project, the positive results of which were announced in a news release dated October 23, 2019 followed by a NI 43-101 Technical Report filed on December 4, 2019.The PEA, the results of which are summarized below, was completed assuming a 10,000 tonnes per day (\"tpd\") throughput and a base-case gold price of US$1,275/ounce. With the gold price currently being well over US$1,600/ounce, the Company intends to accelerate project activities as quickly as possible with the objective of achieving major milestones for the Project by the end of the year. Plans are currently being completed for a field-work and cost study program that will be executed this summer in order to further de-risk the Project and that will provide increased confidence in the highly positive results delivered under the PEA. Details of the program will be provided as work proceeds.Financial AnalysisAs reported in the October 23, 2019 new release, the PEA demonstrates the potential viability of the Project's Phase I operation that envisages a low-cost, owner-operated open pit mine processing 39 million tonnes of material (all from Measured & Indicated resource) over an eleven-year period at an average diluted grade of 1.00 gram/tonne gold (g/t Au) and a 91% metallurgical recovery of gold.Highlights of the PEA are as follows (all amounts are in Canadian dollars unless otherwise indicated; base case is stated using a gold price of US$ 1,275 per ounce and an exchange rate of $C1.00 equal US$0.75):This first phase of operation has a mine life of 11 years with peak production of 130,000 ounces per annum (Year 4) and an average LOM annual production of 104,000 ounces of gold for a total of 1,145,000 ouncesInitial capital is estimated to be C$364M (or US$273M), which includes a contingency of C$42M. Sustaining capital over the life of the mine is estimated to be C$58MAverage metallurgical recovery of gold is 91%Selected operati...